Cardano Price Prediction: Can a Breakout Above $0.800 Drive Uptrend?
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- Cardano price has been fluctuating as investors anticipate the upcoming Vasil hard fork, which is scheduled for June of this year.
- Markets anticipate that the Fed will raise interest rates by half a percentage point at 1800 GMT.
- A surge in ADA demand above $0.8100 could push Cardano’s price up to $0.8460 and $0.8525.
Cardano is stuck at an important support level as investors adopt a wait-and-see attitude ahead of the Fed’s important decision. ADA is currently trading at $0.800 because it was near the lowest level since March 12th. It has dropped by more than 75% since its peak last year, bringing its market capitalization down from more than $91 billion to $25 billion. This week, Cardano price prediction remains bullish, having violated the triple top level at $0.8005.
Cardano Price Prediction – What Exactly is the Vasil Hard Fork?
The Cardano price has been fluctuating as investors anticipate the upcoming Vasil hard fork, which is scheduled for June of this year. This update aims to improve platform performance and potentially attract more developers to the ecosystem. While the block size has already increased by 25% to 80kB, the developers believe that more can be done to improve throughput. That is what the Vasil upgrade will attempt to accomplish.
Vasil will solve the problem of increasing throughput by using a technique known as diffusion pipelining. This process includes header correctness, which means that the block refers to its predecessor, and block completeness, which means that the body hash in the header refers to the received body. Furthermore, the Vasil hard fork will address the issue of denial-of-service (DoS) attacks and will introduce asynchronous validation.
Cardano’s price has recently fallen as investors anticipate that the hard fork will be postponed. Concerns have also been raised about whether this fork will result in increased demand for the Ada token in the near future.
US FOMC and Fed Fund Rate in Highlights
Markets remained in tight ranges on Wednesday as the Federal Reserve raised interest rates, as expected. That came with outlier crude oil surging on the prospect of a European oil embargo against Russia. Markets anticipate that the Fed will raise interest rates by half a percentage point at 1800 GMT. It’s the most in a single day since 2000, in order to combat inflation. Whereas, Fed spoke about detailed plans to reduce its $8.9 trillion balance sheet.
Following the announcement, Fed Chair Jerome Powell holds a press conference.
“If the Fed indicates that they will aggressively front-load the tightening cycle and the back end of the Treasury curve comes off a bit, that will be an indication that markets are starting to price the Fed getting ahead of the curve,” said Francesco Pesole, strategist at ING Bank.
With a spike in US Fed Fund Rate, the dollar may get strong, dragging the ADA/USD coin lower and vice versa.
Cardano Price Prediction – Can Triple Top Breakout Drive Uptrend?
The daily chart shows that the ADA/USDT price has fallen in recent months. It’s mostly because macro issues such as inflation and the Fed collide with slower network user adoption. Cardano coin is currently trading at $0.800, which is an important level of support where it previously struggled to move.
The downward trend has pushed it below the 25-day and 50-day moving averages, and the Stochastic Oscillator has fallen below the oversold level. As a result, with signs of a bottom in sight, a return to $1 cannot be ruled out in May. A drop below $0.7, on the other hand, will render the bullish view invalid.
Looking at the daily timeframe, the ADA/USD coin is heading north, and it’s likely to face resistance at $0.8400. Previously, the same level served as major resistance, therefore, Cardano may have difficulty breaking through this level. So the closing of candles above $0.8400 can signal a bullish trend. A surge in demand above $0.8100 could push Cardano’s price up to $0.8460 and $0.8525. Whereas, the support level remains at $0.8100.
Increased selling pressure, on the other hand, could result in a bearish breakout, sending Cardano’s price even lower, towards the $0.8000 level. The RSI has entered a buying zone, and the EMA lines are also pointing to a bullish trend in Cardano. Consider taking buying trades above the $0.8000 level. Good luck! !
